Rent in Orange County is rising on average of around 4.7% per year, making it difficult to save for a down payment. With rising rent, low inventory, and increasing renter competion in most areas of Orange County, it makes much more sense to buy a home VS. rent. There are SEVERAL options available to help today's buyer purchase a home when they previously may not have been able to.
Here are just some of the facts below:
- 35% of people of purchased a home in 2016 were FIRST TIME BUYERS
- Median age of First Time Buyers: 32 years old
- Buyer's typically financed 90% of the home price
- There are loan programs available with as little as 0% down payment options
- There are down payment assistant programs available assisting Buyers who qualify with 2-5% towards their down payment.
- Options to get funding with Credit Scores as low as 580
Rental prices and home sale prices both have risen to just under 5% on average per year. Instead of wasting your money on paying rent, buy a home and reap the benefits of that 5% appreciation in equity. We recommend speaking with a qualified lender who can take a look at your financial situation and get you qualified, or at least help you get on the right track for a future loan qualification.
WHEN is the Best Time to Buy?
Now that we have addressed why it is better to buy a home rather than rent, the next biggest concern we hear from our clients is when to buy. If you are fully qualified and ready to move, then there is no better time than NOW.
Statistically speaking, the market tends to slow down a bit in late summer. The inventory is at it's peak from the Spring and Summer months, and Sellers start to get a bit anxious as to why their home has not yet sold. These "leftover" sellers have likely over priced their home in the Spring and Summer months and are now seeing much less action on their home. There are less buyers searching for homes in late summer. School is starting, summer vacations are ending, the inventory is at it's highest creating more competition, and the vast majority of Buyers have already settled into their new homes that they purchased earlier in the year. With lower buyer activity and higher inventory (low demand/high supply) in late summer, sellers begin to lower their prices and are much more negotiable with Buyers. This is when a buyer can expect to get a slightly better deal on a home, but not always promised.
If you're worried about housing prices rising to 2007 levels, and if you are curious if we are in another "Bubble," check out our blog "Will this 'Housing Bubble' Burst?" and be sure to Subscribe to our Davar & Co. YouTube Channel, and follow us on Instagram, Facebook, and Twitter for more Real Estate and Orange County news.